APVO is a recent spinoff that has been sold indiscriminately (from $8 in the when issued market to $2.75 today). It currently has a market cap of $55mm but has net cash on hand of $65mm (this includes note payable of $20mm from parent EBS). The way I say it, you are getting $40mm of annual revenue and a large promising pipeline for free. The company currently has four commercial products in hematology and immunology that are on track to generate $40mm in sales in 2016. Piper Jaffray expects this revenue to grow to $80mm by 2019. In addition, APVO has a pipeline of therapeutic antibodies targeted at oncology and autoimmune disorders. APVO is focused on a new cutting edge area of biotech called "bispecifics". Big Pharma and more established biotechs have been shelling out large amounts of capital to partner with "up and coming" bispecific biotech companies. For instance, check out the examples below of big pharma paying large upfront payments in order to get access to bispecific pipelines: Example #1: Novartis recently paid Xencor (XNCR) $150mm upfront, plus up to $2.5bn in milestone payments in a partnership on the Xencor bispecific pipeline. Example #2: JNJ recently paid Macrogenics (MGNX) $75mm upfront and up to $750mm in total if it hits certain milestones targets. There are countless others. Just google: “bispecific partnerships” Aptevo is in the process of speaking with most of the major pharma and biotech companies in order to come to an agreement on a partnership. In my opinion, a partnership would be a huge catalyst as it would provide upfront capital and industry validation of Aptevo's pipeline. I also looked at APVO on a P/B and EV/Revenue multiple basis. On a Price to Book value basis, it trades at 0.4x while peers trade at 2.8x. On an EV/Revenue basis, it trades at -0.25x while peers trade at 13.2x. Full write up is here in case anyone is interested: http://bit.ly/2diHKk0 Has anyone else looked at this one? Any thoughts?
